Federal Bank Q4 Review - On A Very Steady Path: Prabhudas Lilladher
A stack of Indian one-hundred rupee banknotes are arranged for a photograph at a bank in India. (Photographer: Dhiraj Singh/Bloomberg)

Federal Bank Q4 Review - On A Very Steady Path: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Federal Bank Ltd. reported strong earnings of Rs 4.8 billion (our estimate: Rs 3.8 billion) aided by much lower provisioning.

Although bank did maintain a steady provision coverage ratio of 66% and slippages of Rs 5.98 billion was higher than trends but manageable.

It ended with slippage ratio of 1.5% and with lower baggage of unsecured.

Operationally it was marginally weaker than expectation mainly on slightly slower net interest income and non-treasury non-fee income.

Overall asset quality remains steady although given that Covid 2.0 impact is uncertain and no buffer of provisions, incremental slippages will put direct pressure on profit and loss and needs to be watched.

Click on the attachment to read the full report:

Prabhudas Lilladher Federal Bank Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.